Special information

To apply separate passenger auto limits when electing out of Reg. 1.168(i)-6, mark the Apply separate passenger auto limits when electing out of Reg. 1.168(i)-6 checkbox in the Setup > Options > Calculation tab before entering the trade. Note that this setting applies only to trades that are entered after the checkbox is marked.

The application does not automatically handle exchanges involving non-qualifying property; it assumes that all losses are unrecognized.

Like-kind exchange disposal information transfers to the appropriate form in UltraTax CS, if licensed; however, you may need to enter additional information on Form 8824.

The book gain/loss from a like-kind exchange does not transfer to UltraTax CS.

Enter the fair market value of any non section 1245 like-kind property received. This includes any non section 1245 property entered in the FMV of like-kind property received below. This field should be used only for like-kind exchanges with 1245 property.

The application calculates the total amount realized in the exchange and displays it in this field.

To view an on-screen explanation of how the application calculated the total amount realized, click the underlined field label to open the Total Amount Realized dialog. Click the Print button to print the calculation explanation.

Depreciation allowable is either the depreciation allowed if the asset was 100 percent business use, or the prior depreciation calculated by Fixed Assets CS plus the current depreciation. (To view the calculated amount of prior depreciation for the current asset, choose Tasks > Prior Depreciation Comparison.)

For a partial disposition, enter the adjusted basis calculated with depreciation allowed or allowable for the whole asset before it was divided.

Notes

This field is available only for the casualty / theft - replacement, casualty / theft - no replacement, and like-kind exchange methods of disposal.

You can override the calculated amount by entering a different amount in this field. To remove the override amount and re-enter the application-calculated amount, choose Edit > Delete Override.

The application calculates the total amount given up in the exchange and displays it in this field.

To view an on-screen explanation of how the application calculated the total amount given up, click the underlined field label to open the Total Amount Given Up dialog. Click the Print button to print the calculation explanation.

To view an on-screen explanation of how the application calculated the gain realized, click the underlined field label to open the Realized Gain dialog. Click the Print button to print the calculation explanation.

This field displays the recognized gain or realized loss for the Tax treatment.

To view an on-screen explanation of how the application calculated the gain recognized / loss realized, click the underlined field label to open the Realized Gain or Realized Loss dialog. Click the Print button to print the calculation explanation.

Click this button to open a dialog in which you can specify section 1250 information.

Note: This button is available only for assets with a 25-year or greater MACRS life when casualty / theft - replacement, casualty / theft - no replacement, or like-kind exchange method of disposal is selected.

Replacement asset group box

When an asset is disposed of through a like-kind exchange or through casualty / theft with a replacement asset, the application automatically creates the new asset and enters the next available asset number in this field.

Note: This field is available only for the casualty / theft - replacement and like-kind exchange methods of disposal.

Mark this checkbox to elect to treat the entire basis of the replacement property as a current-year acquisition. When this checkbox is marked, an election statement prints with Form 4562.

Notes

This checkbox is automatically marked if you chose Do not follow IRS Notice 2000-4 and Reg 1.168(i)-6 from the Like-kind exchange field in the Setup > Treatments > Treatment Options dialog and the trade took place after 2/27/04.

This field is available only for the casualty / theft - replacement and like-kind exchange methods of disposal.

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